The state-controlled company known as Batelco will acquire
CWC’s businesses in the Maldives, Channel Islands, Isle of Man,
Seychelles, South Atlantic and Diego Garcia, and 25 percent of
Compagnie Monagesque de Communications SAM, it said in a
statement on its website. Batelco has an option to buy the
remaining 75 percent in Compagnie Monagesque for an additional
$345 million within 12 months of closing the original deal.

CWC, which is still in talks to sell its Macau unit to
partner Citic Telecom International Holdings Ltd. (1883), is nearing
the end of disposals meant to concentrate its holdings around
Latin America and the Caribbean, Chief Financial Officer Tim Pennington said in an interview. Once the second phase of the
Monaco transaction is completed and Macau is sold, CWC will have
flexibility to make more acquisitions in the region, he said.

“Essentially, we will be that regional business,”
Pennington said. “It’s extremely good for us. It’s part of the
next step of our evolution.”

CWC shares jumped as much as 7 percent, the biggest
intraday gain since Sept. 17 in London, where the company is
based. The stock was up 5.2 percent at 36.50 pence as of 10:07
a.m., giving CWC a market value of 923 million pounds ($1.48
billion).

Macau Talks

CWC was formed in 2010 in a split that created Cable &
Wireless Communications and Cable & Wireless Worldwide, a fixed-
line company that was acquired by Vodafone Group Plc (VOD) this year.

Batelco said it plans to raise as much as $1 billion of
debt through a bond issue and a term-loan facility to finance
the transaction. The company has appointed Citigroup Inc. and
BNP Paribas SA to arrange the financing.

Pennington said that the company is still negotiating with
Citic Telecom about its Macau business, and he believes others
would be interested in the asset. He declined to say when the
talks might conclude. Citic may pay as much as $750 million for
CWC’s stake in the Macau phone operator, two people familiar
with the matter said in October.

“We think that Macau is an extremely attractive
business,” Pennington said. “It’s got a great profile. It’s
got great operating metrics. We think lots of people are
interested.”